Luxury tax in: what value is charged and how to avoid it

C January 1, 2026 luxury tax in Russia applies to vehicles costing from 10 million rubles - this is the official threshold established by the Tax Code (Article 362 of the Tax Code of the Russian Federation). However, for other categories of property (real estate, yachts, aircraft) the thresholds are different, and the rates depend on the price and type of asset. For example, for passenger cars the tax starts from 10 million, but for motorcycles - already with 5 million rubles. If your car falls into this category, the tax office will automatically calculate the fee according to the traffic police data - it can only be avoided by challenging the cadastral value or re-registering it as a legal entity.

Threshold amounts are regularly indexed, so in 2026 they are higher than in 2023 (then the limit for cars was 8.5 million rubles). Important: the tax is calculated not on the market, but on cadastral value (for real estate) or price according to the purchase and sale agreement (for transport) specified in the documents. If you bought a car for 9.9 million, but the amount is indicated in the PTS 10.1 million, tax will still be charged. You can check the current thresholds on the Federal Tax Service website or through the service nalog.ru in the section "Reference information on property taxes".

The luxury tax is not a separate tax, but increased rate of transport or property tax for high value assets. It was introduced to stimulate the purchase of domestic products and reduce the import of premium goods. However, in practice, it affects not only millionaires: due to inflation and rising prices in the car market, even some business class crossovers (for example, Toyota Land Cruiser 300 in top trim levels). Let's look at exactly how the tax is calculated, what categories of property fall under it, and how to legally reduce the tax burden.

Luxury Tax Thresholds in 2026

The current value limits at which the luxury tax begins are enshrined in the Tax Code and are adjusted annually to take into account inflation. B 2026 The following thresholds apply:

• 🚗 Passenger cars: from 10 million rubles (in 2023 - 8.5 million).
• 🏍️ Motorcycles and scooters: from 5 million rubles.
• ⛵ Yachts and boats: from 10 million rubles (for vessels over 8 meters in length).
• ✈️ Airplanes and helicopters: from 300 million rubles.
• 🏠 Inability: luxury tax is not applied, but there is an increased property tax for properties worth over 300 million rubles (rate up to 2%).

For vehicles, the threshold amount is determined on the date of initial registration at the traffic police department. For example, if you bought Mercedes-Maybach S-Class in 2023 for 9 million rubles, but they registered it only in 2026 (when the limit was raised to 10 million), and you won’t have to pay tax. However, if the car was purchased before 2026 at a price above the old threshold (8.5 million), but below the new one (10 million), the tax will still be charged according to the old rules.

Important: for electric vehicles and hybrids there is a discount - the threshold cost is 30% higher. That is, the luxury tax for them starts with 13 million rubles instead of 10 million. This rule applies to models such as Tesla Model S Plaid or Porsche Taycan Turbo S.

How is luxury tax calculated for cars?

The tax rate depends on cost and age vehicle. The more expensive and newer the car, the higher the coefficient. Calculation formula: Tax = (Engine HP) × (Base Rate) × (Increasing Factor).

Basic rates are set by regions, but apply for luxury cars federal coefficients:

• 💰 Cost 10–15 million rubles: coefficient 1,5.
• 💰 Cost 15–20 million rubles: coefficient 2.
• 💰 Cost over 20 million rubles: coefficient 3.

Example: BMW X7 M50i 2026 model with 530 hp engine. and a price of 12 million rubles.

1. Basic rate in Moscow for cars 350+ hp. — 150 rub/hp
2. The increasing coefficient (10–15 million) is 1.5.
3. Tax = 530 × 150 × 1.5 = 119,250 rubles per year.

For comparison: without the coefficient, the tax would be 79,500 rubles. Difference - 39,750 rubles per year just because the car is expensive.

Cost of the car, RUB million	Coefficient	Tax example (400 hp, Moscow)
Up to 10	1	60,000 ₽ (150 rub/hp)
10–15	1,5	90 000 ₽
15–20	2	120 000 ₽
Over 20	3	180 000 ₽

Which cars are subject to the luxury tax in 2026?

Not only supercars, but also premium crossovers, sedans and SUVs are at risk. Here TOP 5 models, which most often become the object of taxation:

• 🚙 Toyota Land Cruiser 300 (from 10.5 million ₽) - even the basic configuration exceeds the threshold.
• 🚘 Mercedes-Benz G-Class (from 12 million ₽) is a classic luxury tax item.
• 🚗 Porsche Cayenne Turbo (from 11 million ₽) - falls into the category of 10–15 million.
• 🚖 Lexus LX 600 (from 10.2 million ₽) - minimally exceeds the limit.
• 🚓 BMW XM (from 15 million rubles) - coefficient 2 due to the price of 15–20 million.

It's interesting that some budget by world standards models are also subject to tax. For example, Audi Q7 in the maximum configuration it can cost 9.8 million rubles, but if you add options (leather interior, premium audio system), the price will exceed 10 million. The same applies Volvo XC90 Recharge — a hybrid version with a full package of options costs 10+ million.

You can check whether your car is subject to tax through the service traffic police.rf/check/autoby entering the VIN or license plate number. If a car is purchased on credit, tax is still charged on the full cost, and not on the remaining debt.

List of cars that almost fall under tax (9–10 million rubles)

Range Rover Velar, Audi e-tron GT, Jaguar F-Pace SVR, Cadillac Escalade

How to Legally Avoid the Luxury Tax

Yes 4 legal ways reduce the tax burden or avoid taxes altogether:

1. Re-registration as a legal entity. Companies pay vehicle tax at different rates (often lower), and luxury cars can be registered as company vehicles. Disadvantage: real business transactions are required, otherwise the tax authorities will recognize the transaction as imaginary.
2. Challenging the cadastral value. If the car was purchased below the market price (for example, with mileage), you can file a lawsuit to review the cost. This will require an independent assessment.
3. Buying a car older than 3 years. For cars aged from 3 to 5 years, the coefficient is reduced by 30%, and over 5 years - by 50%. For example, Porsche Panamera 2020 will cost less in taxes than a new one.
4. Use of leasing. In some regions, leased cars are taxed at preferential rates. But you need to clarify the conditions in local legislation.

⚠️

Attention: Attempts to underestimate the cost in a sales contract or register a car in the name of a relative with a low income lead to fines of up to 40% of the tax amount (Article 122 of the Tax Code of the Russian Federation). The tax office easily identifies such schemes through analysis of income and expenses.

Another nuance: if you sell the car before January 1 of the next year, tax is charged only for the months of ownership. For example, if Land Cruiser was owned from March to October, you will only have to pay for 8 months.

Luxury tax for real estate: what has changed in 2026

There is no luxury tax as such for real estate, but it does apply increased property tax for objects costing from 300 million rubles. The rate depends on the region:

• 🏢 Moscow and St. Petersburg: up to 2% of the cadastral value.
• 🏡 Other regions: up to 0.5% (but local authorities may increase the rate).

For example, an apartment in the center of Moscow with a cadastral value of 350 million rubles will be taxed in the amount 7 million rubles per year (2%). For comparison: the standard rate for housing up to 10 million rubles is 0.1%, that is, 20 times lower.

Important: tax is calculated on cadastral value, which is often overestimated. It can be challenged in court or through a commission under Rosreestr. If it is possible to reduce the cadastral value to 299 million, the tax will return to standard rates.

⚠️

Attention: Since 2026, the tax authorities began to more actively check real estate transactions at market prices. If you sell an apartment for 290 million, but its real value is 310 million, inspectors may charge additional tax based on the market price.

Common mistakes when paying luxury tax

Owners of premium assets often face problems due to ignorance of the nuances of taxation. Here TOP-3 errors, which lead to fines:

• 📄 Discrepancy between the data in the title and the purchase and sale agreement. If the price of 10.5 million is indicated in the PTS, and 9.9 million in the contract, the tax office will take the larger amount as a basis.
• 📅 Missing a payment deadline. The luxury tax is included in the transport tax, which must be paid before December 1 next year. For delays, a penalty of 1/300 of the Central Bank refinancing rate per day is charged.
• 🚗 Ignore threshold changes. Many believe that if the car was purchased before the limit was raised (for example, in 2023 for 9 million), the tax will not increase. This is not true: the threshold value is fixed at the date first registration, but rates may vary.

Another pitfall: if you imported a car from abroad, its customs value may differ from the market value. The tax office takes as a basis the maximum of two amounts. For example, customs assessed Bentley Continental GT 12 million rubles, and the market price is 14 million. The tax will be calculated based on 14 million.

To avoid mistakes, check the data in the taxpayer’s personal account (lkfl.nalog.ru) or through the mobile application "Taxes FL". It displays the tax calculation, the basis (the cost of the car) and the payment deadline.

FAQ: Answers to frequently asked questions about the luxury tax

🔹 My car costs 9.9 million rubles. Do I need to pay luxury tax?

No, the threshold is in 2026 - 10 million rubles. However, if the PTS or purchase and sale agreement indicates an amount of 10 million or more, tax will be charged. Check the documents!

🔹 How do I know if my car is subject to luxury tax?

Enter the VIN or license plate number on the traffic police website (traffic police.rf) or in the "Autocode" service. The system will show the cadastral value. Information is also available in the taxpayer’s personal account.

🔹 Is it possible to challenge the tax if the car was purchased at a reduced price?

Yes, but only if you provide evidence of real market value (for example, an expert assessment). The court may reduce the tax base if the price in the contract is artificially inflated.

🔹 Which regions have the highest luxury tax rates?

Leaders: Moscow (coefficient up to 3), St. Petersburg, Moscow region and Sochi. In some regions (for example, in Crimea) rates are lower than federal ones.

🔹 What happens if you don’t pay luxury tax?

The tax office will begin collection through the court: first a fine of 20% of the debt amount, then a penalty (0.033% per day), and then the seizure of accounts or property. In extreme cases, travel abroad may be restricted.